How has the drop in cryptocurrencies fallen to NY and El Salvador?

The reduced price of virtual currencies does not seem like bad news for everyone

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Jan 24, 20227 min de lectura

The measurement of the glass is a very frequented form of analysis in today's social psychology, in this case the scenarios present before this idea of "how do you see the glass?", comes from the drop in virtual currencies.

Although most of it is sad and frustrating news for ordinary entities that have invested in cryptocurrencies and have been liquidated by their trader, there are also people who see it as a great opportunity to invest at this time.

Characters who fervently believe that blockchain technology is a salvation for the financial system, have been present giving something to talk about during this drop in cryptocurrencies. Stay to find out more!

Cryptocurrencies: the drop in their net price

The decline presented since the last days of this week in the cryptocurrency market has been even more serious than is believed. This as a result of an analysis of previous days.

Said study evaluates the price of all cryptocurrencies added together, showing a difference in amount in less than two weeks. On January 15, the net worth of the cryptocurrency market stood at $2.05 trillion.

As a unit of measurement we will use the richest man in the world, Elon Musk, who has a net worth of $260 billion. The sum of these $2.05 billion is 6 Elon Musk grouped together.

This Friday the following sum difference was registered, where the amount changes to $1.9 billion. Even so, this figure could have been worse when bitcoin fell to $34,771.77 on the morning of this Saturday.

Crypto Depression: Acquisition Still Seen

Despite the abrupt fall that cryptocurrencies have had since the beginning of this year, in addition to the loss of many investments with assets of this type, the crypto community has not stopped betting on these cryptocurrencies.

But the decision-making of the three main mining countries have developed a tense environment in the market, as you can read in our article: The depressive week: Cryptos present falls by mining countries.

The acquisition of these coins came as a result of the globally shared thought that "in decline it is much better to buy", so that when the market capitalization rises your assets prosper with its momentum.

This is a "mantra" shared by politically influential people such as Nayik Bukele and Erick Adams, president of El Salvador and mayor of New York respectively.

Erick Adams: acquired bitcoins right in the fall

Since the electoral campaign that produced the result of winning the mayor's office last November, Erick Adams has set the ideal of turning New York into a center of operations with blockchain technology.

So entering into a so-called "friendly competition" with Francis Suárez, counterpart of the city of Miami, he decided that his first three salaries as a government entity of this city, be a payment in bitcoins.

On Friday, the mayor's payment, which is valued at USD $9,924.66, was made by the Coinbase platform. Just sent at the moment where the cryptocurrencies fell even more.

He remains happy for his first salary payment

At the beginning of January, he took possession of the mayor's office, and remained on several occasions, anxious for payment in cryptocurrencies. Until a few days ago Adams kept this same attitude.

In a televised interview, the interviewer asked him how he was with the situation of obtaining his salary in digital currencies when the market did not look good at all.

The mayor replied that it was a good time to get his bitcoins, as the falling possession means that when the market goes up he will get a lot more money.

This reviewing the "mantra" of a large percentage of the population every time the crypto depression situation repeats itself.

How does it affect New York City?

Erick Adams, despite being the mayor of the great city of New York, the heart of US finance, cannot do much more for now to promote the acquisition of cryptocurrencies.

His speech and proposals in his political campaign made him acclaimed by the majority of New Yorkers, all this keeping in mind the technology of cryptocurrencies.

But the truth is that both he and those who support him cannot further enlarge the volatile market from their territory, this as a result of the city following the strict regulations of the US government.

The financial laws and the specifications of the New York Department of Labor make him one of the few people who can receive a salary in digital currency.

So far, the week of depression hasn't affected New York much more than it might have affected the entire global territory.

Nayik Bukele: Invest 15 million in bitcoin

The president of El Salvador when he took office has not stopped wanting to be innovative, and his idea that blockchain technology, created by Nakamoto, enter his territory seemed to excite him since its appearance.

In September, when it was a fact that the queen cryptocurrency circulated legally in a South American territory, the president acquired a total of 1,220 bitcoins for the inauguration of the project.

On Friday, from his Twitter social platform account, he reported the acquisition of another 410 bitcoins, according to him for only $15 million. The president was excited and wanted to motivate the purchase of tokens.

The great investment that El Salvador is making

The Assembly of this country granted him $200 million for the purchase of bitcoins and the construction of the volatile legal market at the national level.

While reports from the Development Bank of El Salvador say that of these $200 million, the financial entity has possession and control of $150 million, but all this in banking secrecy.

So far there has been approximately $70 million spent by El Salvador just to acquire bitcoins. And the legislative assembly is expected to confirm more money for Bukele and his Bitcoin City dream.

But the total expense is only assumptions and sums made by unauthorized entities, taking as a margin what was published on Bukele's Twitter account. Because El Salvador has no official financial source other than the president's tweets.

How does it affect El Salvador?

After scandals seen from Salvadoran lands, for converting bitcoin into a legal tender, there were protests and complaints against government control of this country.

The platform or virtual wallet created to store the bitcoins of its citizens has so far dropped 15%, and perhaps much more after the fall of cryptocurrencies.

Salvadorans have had many problems with the sustainability of their digital assets, and beyond the effects of their president's decisions, the tension remains even more felt when buying more bitcoins.

Spending the country's money in a currency that most citizens no longer like.

For now, both leaders, Adams and Bukele, maintain positions and believe they are doing the right thing. Climbing the mountain for the spread and improvement of blockchain technology.